In recent years, there has been a surge in demand for second homes. There has also been a noticeable increase amongst those seeking a second home abroad. This has created a huge interest in Spanish property.
Overseas property is also known as international real estate and can sometimes be for investment purposes only. This has a detrimental effect on the local economy and the property market for those native to Spain is hugely distorted as a result.
The effect of an increase in demand is an increase in price. This is great for those who have property and wish to make a return, but for those who grew up in Spain and wish to buy a home for themselves is a disaster as it is likely that they will be priced out of the market.
Not all properties bought in Spain are solely for investment purposes: many villas and apartments are purchased as a holiday or second home. This is usually by rich couples, often without children who may also opt into a time sharing scheme. There are a few issues surrounding this arrangement and it is most definitely unpopular amongst the local citizens. Many houses will be left unoccupied during the colder months outside of the holiday season and the local community takes a hit as their town becomes punctuated and eventually overwhelmed by foreign investors and tourists. We recommend you use a broker when sending International payments to purchase your new home overseas.
The huge and rapid increase in demand for Spanish property has led to building firms and property developers looking to construct quickly and make a quick profit.
Unfortunately, this activity has had a detrimental effect on the local environment and quality of life. Building sites have become a new fixture on the landscape which brings with it noise and pollution, not to mention the fact that it’s an eyesore.
The local infrastructure is also unable to fulfil the needs of a huge increase in housing. There have been numerous cases of drainage and water shortages and problems which are having an adverse effect on the perfect retirement or summer getaway image as well as a heartbreaking trauma for those who have been established in the area.
Buyers have often been left stranded and financially ruined buying building projects that have gone wrong or property developers who don’t live up to expectations. For those that choose to sell up and move to Spain, either as a lifestyle change or retirement, this can be crippling and leave them with no choice, effectively trapped in a foreign country.
It is most certainly advisable to question the image offered by Spanish property of the perfect retirement or stunning summer holiday residence. The increase in demand has been largely unsustainable and the supply of housing has been rushed and badly planned. There are many houses and villas in Spain in areas not affected by this and, of course, it is necessary to take every precaution with such an important decision.